What is an Umbrella Company?

If you have just secured your first contract, your agency has probably advised you to find yourself an Umbrella Company. You may therefore be wondering what is an Umbrella Company and why do I need one.

As a contractor for you to be paid direct into your bank account, PAYE and National Insurance Contributions need to be deducted from the money you earn.

As well as this your agency will normally require an invoice from a Limited Company for the work you have completed. By being part of an Umbrella Company such as MyPay we can take care of the invoicing for you whilst ensuring that all the administration and tax requirements are taken care of as well.

An Umbrella Company can be compared to having a large back office working on your behalf but for just a fraction of the price.

For 'Who are MyPay?' click here.